What Investors Need to Know for February


When people talk about the January chill this year, it’s just as likely they mean the stock market as the weather.

The first month of the new year was a frosty experience for investors, leaving them hoping that February will bring a welcome thaw.

A month-ending drop on Friday left the Standard & Poor’s 500 index in a 3.1% hole for 2015.

1. January jitters: Spillover effect?

January is known for setting the tone for the rest of the year in terms of stock performance. Investors shouldn’t despair. This is exactly how last year started — in fact, it was even worse. Yet 2014 ended in fine fashion. Though this time things are different because the stock market faces headwinds that didn’t exist a year ago.

2. Hot prospects

If you’re looking for stocks to heat up your portfolio in February, there are a handful of hot prospects. The market overall has done well in February – gaining an average 3.1% the past five years. And 11 stocks in the S&P 500 that have beaten the market consistently in February during that period.

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Source: USA Today